Paris, Porte de Versailles. mobile.bg team from the event site.
The CEO of the Volkswagen Group, Oliver Blume, came out with a categorical position in defense of the European car industry, advocating for the new regulations, which are under the title "Made in Europe". The initiative, framed within the framework of an ambitious Industrial Accelerator Act, aims to provide a fair playing field for local manufacturers against the increasingly aggressive onslaught of Asian competitors on the market.
The proposed regulatory package envisages linking state subsidies and public procurement to the local origin of materials and production facilities. According to Blume, who made his speech at a special event on the eve of the Paris exhibition, the advantages should go to those players who permanently commit capital, develop research and create jobs on the Old Continent, and this requirement should apply equally to Chinese brands marketing their products here.
However, the pressure on the European giants is multi-layered. The industry is simultaneously facing a number of systemic challenges, including high energy prices, shrinking consumer demand due to inflationary processes and the need to drastically shorten the life cycle of new vehicle development. In response to these market shocks, the Volkswagen Group management has already launched a radical internal reorganization.
The restructuring plan envisages the dismissal of up to 100 thousand employees, a move that Chief Financial Officer Arnaud Antlitz justified with the critical need to restore long-term profitability and stability. Along with the personnel changes, the concern is undertaking an unprecedented reduction in its global portfolio, with the number of models offered by the brands under the group's umbrella - including Volkswagen, Audi and Skoda - will be halved from 150 to just 75 offerings.
The radical simplification of the product range aims to relieve production capacity, facilitate the dealer network and optimize the costs of developing and manufacturing each individual car, ensuring the company's sustainability in the new economic reality.